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Which one of the following is an example of a direct bankruptcy cost? Forgoing a positive net present value project to conserve current cash Operating

Which one of the following is an example of a direct bankruptcy cost?

Forgoing a positive net present value project to conserve current cash

Operating at a debt-equity ratio that is less than the optimal ratio

Incurring legal fees for the preparation of bankruptcy filings

Reducing the dividend payout ratio as a means of increasing a firm's equity

Losing a key customer due to concerns over a firm's financial viability

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